Fixed Income Market Overview
Federal Reserve Chair Jerome Powell, speaking at the Foreign Bankers’ Association in Amsterdam, reiterated concerns about persistent inflation, suggesting a prolonged period of unchanged policy rates. Despite expectations for inflation to decrease, recent data, including the Labor Department’s producer price index showing a higher-than-expected 0.5% increase in April, underscore the uncertainty. Powell emphasized the need for more evidence before considering rate cuts, given ongoing inflationary pressures exceeding the Fed’s 2% target. Meanwhile, market reactions were muted, reflecting investors’ cautious sentiment amid mixed economic indicators. The data presents a challenge for the Fed, as various inflation measures continue to surpass target levels, suggesting a potential reassessment of monetary policy in the coming months.
U.S. orders Chinese backed crypto miner to sell land near nuclear missile base.
Wall St edges up after ‘mixed’ producer inflation data, all eyes on CPI.
Biden sharply hikes US tariffs on an array of Chinese imports.
Oil falls as macroeconomic woes weigh on investor sentiment.
Diamond giant De Beers faces spin-off as Anglo American takeover pressure mounts.
Major Indicies
| Symbol | Price | Change | %Change |
|---|---|---|---|
| DJIA | 39,558.11 | 126.60 | 0.32%↑ |
| NASDAQ | 18,322.77 | 124.16 | 0.68%↑ |
| SNP 500 | 5,246.68 | 25.26 | 0.48%↑ |
| NIKKEI | 38,356.06 | 176.60 | 0.46%↑ |
| HIS | 19,073.71 | -41.35 | -0.22%↓ |
| VIX | 13.42 | -0.18 | -1.32%↓ |
Bonds
| Name | Yeild | CHG |
|---|---|---|
| US 10-YR | 4.44% | -0.05 |
| US 30-YR | 4.59% | -0.05 |
| US 5-YR | 4.46% | -0.05 |
| JPN 10-YR | 0.97% | 0.03 |
| UK 10-YR | 4.17% | -0.05 |
Futures & Commodities
| Name | Last | Change | %Change |
|---|---|---|---|
| WTI CRUDE | 78.02 | -1.10 | -1.39%↓ |
| NAT GAS | 2.344 | -0.037 | -1.55%↓ |
| GOLD | 2,359.90 | 16.90 | 0.72%↑ |
| SILVER | 28.70 | 0.26 | 0.91%↑ |
| COPPER | 4.895 | 0.129 | 2.71%↑ |
Equity Market Overview
Alibaba
Shares of Alibaba tumbled as the Chinese tech giant reported a sharp decline in net profit for the fiscal fourth quarter. Despite revenue slightly exceeding estimates, net income dropped by 86% year-on-year, prompting a 7% decrease in share price. Alibaba faced challenges in 2023 with significant corporate restructuring and management changes, though it increased its share buyback program to instill confidence. While its core ecommerce business showed signs of recovery, particularly in international commerce, the cloud computing division struggled with minimal growth, prompting a focus on AIrelated products for future expansion.
Sony
Sony reported a 7% decrease in annual profits for fiscal year 2023, attributed to a decline in its financial services division and missed sales targets for its PlayStation 5 gaming console. Despite a 14% increase in revenue, reaching 3.5 trillion yen, operating profit slightly fell short of expectations at 229.4 billion yen. The company’s full-year operating profit dropped by 7% to 1.2 trillion yen, with PlayStation 5 sales totaling 20.8 million units, just below the revised target. Sony anticipates weaker sales of 18 million units for the fiscal year ending March 2025, reflecting ongoing challenges in its gaming and financial services sectors.
GameStop
The remarkable surge in GameStop shares on Monday inflicted significant losses nearing $1 billion on short sellers, as reported by data from S3 Partners. With GameStop skyrocketing by 74%, hedge funds engaged in short selling incurred a mark-tomarket loss of $838 million, prompting expectations of short covering. The resurgence in GameStop’s stock was seemingly catalyzed by “Roaring Kitty,” alias Keith Gill, reactivating activity on social media, reigniting the “meme stock” frenzy reminiscent of the 2021 episode. Amidst the frenzy, short sellers face heightened volatility and potential further losses, with GameStop’s short position surpassing 24% of its freely tradable shares and losses exceeding $1.24 billion in May alone.
